Euronews: Kyrgyzstan, Kazakhstan and Armenia have become centers of re-export of Russian goods

Euronews Business investigates how Russia, bypassing the sanctions, is using third-party country to maintain trade relations with a variety of European nations.

The Brookings Institute has used the International Monetary Fund (IMF)’s direction of trade data to map out the last few years’ exports being made by several countries to central Asian countries, which are suspected of being transshipments to Russia. For this mapping, the Brookings Institute looked at Armenia, Kazakhstan, Kyrgyzstan and Georgia.

Irina Tsukerman, president of Scarab Rising, a security strategy advisory company, also told Euronews: “One of the most effective ways Russia uses Kyrgyzstan to bypass sanctions and export-import controls are reexports of goods.”
The EU and U.S. have imposed sanctions on Russia, which have led to a shift in trade patterns. These sanctions have made it more difficult for Russia to access high-tech goods, and have increased the cost of doing business with Russia. Kyrgyzstan is extremely dependent on Russia and has few alternatives for trade. Countries like Kyrgyzstan, Kazakhstan, and Armenia have become hubs for re-exporting goods to Russia. This is because trade within the Eurasian Customs Union (EACU) is not subject to mandatory customs declarations and inspections.

Coming to what products Russia continues to import to Europe, Tsukerman said that fuel is in the first place. Another major export from Russia to Europe consists of agricultural products, including grains such as wheat, processed foods, beverages, and fertilizers.

“Russia is even managing to push through industrial equipment and machinery, including even vehicles and electronic goods. Kyrgyzstan is also an important transit point for metals and minerals, including both ferrous and non-ferrous metals such as aluminum and copper,” Tsukerman noted.